Investments in clean water

инвестиции в воду

In the classic sense the investments are the investing in equities, currency, gold, real estate, mutual funds, indices, etc. Cryptocurrency, Antiques, wine, diamonds, collectible coins can be attributed to exotic investing. But there is another direction, far-sighted investment in what is yet in its infancy, but that can generate income in 10-20-30 years, but in the amount of more than 1000%. Not long ago, the passing idea was alternative energy and hydrogen. Nuclear power was somewhat frozen, but its time is yet to come. One of those investments we have already described — investments in waste recycling plants. In turn, another interesting idea — investment in water.

You think that there is no sense in long-term investment? Remember how the Rockefeller Empire was born, which began to invest in oil and coal long before this resource became popular. In our case the situation is reversed — we suggest to invest in that resource, the amount of which with stable demand will only decrease, and thus will increase in its value.

 Promising investments in water

According to the UN, by 20130  the drinking water problem will be especially acute for the half of the population. Now the largest investment banks investing in aquifers, development of filtration equipment, means for excluding the salts from water and its disinfection.

  • Remember the legendary movie “Game for a fall?” Christian bale, who in the film plays a cunning financier Michael Burry, provided in advance of the onset of the subprime mortgage crisis of 2008, analyzing the quality of loans. After the crisis erupted, he closed his hedge fund to the profit and put it in the water market.

Gradually a group of investors was formed in the world who are buying up lakes, canals, water rights, gradually turning them into industrial territory. According to statistics, only 3% of water is potable, 2% is ice. The number of people is gradually increasing (by 2050 year will exceed 10 billion people that will lead to the demand for agricultural products). The shortage of water for irrigation and livestock prices will spur food.

  • The S&P Global Water, which includes up to 50 companies operating in the direction of extraction and transportation of water resources, over the last 5 years grew by 97%, and the turnover of the world market of water resources will exceed 500 billion USD.

For a private investor there are two traditional investment option in water: purchase of securities of individual companies or to invest in specialized ETFs. Some examples of ETF:

  • Pictet Water Fund. The Foundation of Switzerland, which manages a capital of 3.1 billion euros. For three years showed an increase of 46.9%;
  • iShares Globak Water;
  • Power Shares Global Water;
  • Impax Markets.

Investing in water as investment in individual company shares AquaVenture (an increase over the past 3 months was 39%). A young company involved in water desalination, is growing very fast, keeping steady.

And yet, investments in water has high risks. First, not all appreciate the potential of this market, so the shares could sink in the future. Secondly, the returns are too long term — investments are interesting to those who expect to remain in this business, methodically developing it. Third, there are fundamental factors, able to correctly assess the prospectivity of a particular individual company. The conclusion: investing in water — venture project, the analysis of companies which requires very careful analysis. It is important to understand that you will have to wait a long time for the return.

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